Singapore's three major banking groups exhibit resilience against economic challenges, as reflected in their AA- ratings, Fitch Ratings said in a Friday release.

The banks, which include DBS Group (SGX:D05), Oversea-Chinese Banking Corporation (SGX:O39) and United Overseas Bank (SGX:U11), have robust standalone credit profiles and an extremely strong potential for extraordinary state support, Fitch said.

As profitability and asset quality have tempered, ample capital levels and rating headroom should allow the banks to withstand a weaker operating environment, according to the rating agency.

The banks also benefit from leading domestic franchises and significant pricing power to access varying low-cost funding, Fitch said.

Moreover, business diversity and disciplined underwriting practices contribute to the banks' stable asset quality and profitability, according to Fitch.